You Don't Have to Pick a Winner in the Banking Sector -- Here's Why

Bank stocks took a tumble this year in the wake of deposit runs that resulted in several U.S. banks being placed into receivership with the Federal Deposit Insurance Corp.

But that banking crisis did not spread through the industry, and now, several months later, the sector seems to have stabilized. This is not to suggest that the near-term outlook won't be challenging. But at this point, contrarian investors may be thinking about increasing their exposure to the banking sector while valuations and stock prices within it remain depressed.

But this can also be a daunting proposition because the sector does face headwinds, and share prices could continue to be volatile, especially with second-quarter earnings season starting. The good news is that you don't have to pick a winner in the banking sector to get exposure.

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Source Fool.com